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QUESTION
Qd=50-0.005(50000) Qd= 300-5P Qs= 100+O.4P-2(15) Qs=130+0.4p Equating Qd and Qs: 300-5P = 130 +0.4P = 170 P=31.48 But Qd = 300-5P Thus Q =...
Problem 3 (10 Points - Calculation): If demand is represented by Qd = 50 - 0.5P + 0.005I where I = $50,000 and supply is represented by Qs = 100 + 0.4P -2W where wages (W) = $15.00, compute the equilibrium price and quantity. What happens if income falls to I = $40,000?
The solution I received is confusing. See Attached
On 3rd line Qs= 100 + 0.4P -2(15), when you multiply -2(15) your result is = +30 Why?
or where did you get 130? Thanks.
